Gold climbs higher toward $1,500 on risk-aversion

Brexit uncertainty causes market mood to turn sour on Wednesday.
US Dollar Index stays directionless above the 97.50 mark.
10-year US Treasury bond yield falls for the second straight day.

Eren Sengezer FXStreet

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows. As of writing, the pair was up 0.45% on the day at $1,494.

Eyes on Brexit headlines

Resurfacing fears of the United Kingdom (UK) crashing out of the European Union (EU) without a deal after British Prime Minister Boris Johnson's timetable to finalize his proposed deal got rejected by lawmakers allows traditional safe-havens to find demand on Wednesday.

Reflecting the risk-averse market environment, the 10-year United States (US) Treasury bond yield, which lost 2% yesterday, continued to push lower and was last down 1.05% on the day at 1.750%.

Nevertheless, investors seem to be taking a cautious stance while waiting for the EU to make a decision on a possible Brexit extension to January rather than fleeing to safety as seen by modest gains posted in global equity indexes.

On the other hand, after taking advantage of the selling pressure surrounding the GBP on Tuesday, the Greenback stays relatively quiet with the US Dollar Index consolidating its recent gains above the 97.50 handle ahead of Thursday's durable good orders, new homes sales, and Markit Manufacturing and Services PMI data releases.

Technical levels to watch for

XAU/USD

Overview
Today last price	1494.11
Today Daily Change	6.30
Today Daily Change %	0.42
Today daily open	1487.81

Trends
Daily SMA20	1493.69
Daily SMA50	1506.07
Daily SMA100	1457.84
Daily SMA200	1377.56

Levels
Previous Daily High	1489.05
Previous Daily Low	1481.05
Previous Weekly High	1497.95
Previous Weekly Low	1477.15
Previous Monthly High	1557.03
Previous Monthly Low	1464.61
Daily Fibonacci 38.2%	1485.99
Daily Fibonacci 61.8%	1484.11
Daily Pivot Point S1	1482.89
Daily Pivot Point S2	1477.97
Daily Pivot Point S3	1474.89
Daily Pivot Point R1	1490.89
Daily Pivot Point R2	1493.97
Daily Pivot Point R3	1498.89

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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